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Monday, April 24, 2017

Portfolio rules

I like to create a portfolio that has low risk over the long run and have set up some fairly arbitrary rules. I'm not a fund manager so rule is maybe a bit too strong, but guideline doesn't sound as cool.

No single stock/fund shall make up more than 10 % of the portfolio.

No single stock shall make up more than 10 % of the total dividend.

No single sector shall make up more than 20 % of the portfolio.

No single region shall make up more than 50 % of the portfolio.

With region I mean North America, the Nordic countries, the rest of Europe and Global. I know the world is bigger, but currently those are the markets that I have a possibility to invest in with a manageable brokerage. At the moment I have easy access the stock market in Sweden, Norway, Finland, Denmark, Germany, the United states of America and Canada. I hope to get cheap access till more of Europe surfing this year.

These rules är not very strict. I will not sell stocks just because some sector have increased in value but they will guide new purchases.